Air fares to rise thanks to stupid oil prices
Flying on a plane? It's about to become more expensive according to the aviation behemoth that is the forces of British Airways and Iberia combined. Or 'International Airlines Group', if you prefer.
And it is all thanks to rising oil prices.
Willie Walsh, chief executive of IAG has said that ticket prices and fuel levies were being looked at after oil decided to cost itself $110 a barrel this week.
Walsh says: "Realistically, everybody needs to understand that high input prices for oil does ultimately find its way through to the consumer."
BA recently hiked their charge for long-haul return trip in economy and premium by £24 per return trip, with business/first-class return journeys rising by £34. Spread that across a family going on holiday and it soon adds up.
Of course, this will hit budget airlines too. And we're all looking directly at Ryanair who will no doubt find new and inventive ways of charging us for add-ons. Like 'air consumption' or a surcharge for simply existing.
That said, it isn't exactly surprising. IAG's fuel costs are reportedly going to jump from €1.2bn to €5.1bn this year, which is staggering.
IAG added that their figures in business class sales remained healthy: "Our long-haul business remains strong, particularly in the premium sector, but the short-haul European market continues to be highly competitive." But will this continue as the recession continues apace?